SALARY NEGOTIATION STRATEGIES

1. SALARY NEGOTIATION STRATEGIES

2. Concepts Learned from your Best & Worst Experiences • Research – doing your homework • Displaying confidence • Walking away – don’t display emotion • Asking for time to consider

3. Objectives • Answering questions at various stages • Acknowledge offer; buy time to decide • Consider all aspects of offer • Close the gaps

4. Preserving Bargaining Power • Sales and negotiation are two different transactions • Biggest error people make is to negotiate prematurely • You cannot negotiate until an offer is made

5. The Ultimate Rule • Being the first to say a number erodes your ability to move up or down later • Too high? Price self out of market • Too low? May not be qualified • We didn’t say to NEVER disclose, just don’t say the number first

6. Talk to the Decision Maker • If HR extends the offer, go ahead and talk to the hiring manager • Try to deal face-to- face if at all possible

7. Know Your Market Value • Know salaries and negotiating climate • www.salary.com • www.wageweb.com • www.wetfeet.com • www.vault.com • www.careers-in-business.com • www.rileyguide.com

8. State Salary History • Option One – Don’t disclose • Option Two – Be accurate

9. State Salary Requirements • Option One – leave blank, use “open” or “negotiable” • Option Two – Look at market range and make its midpoint your starting salary

10. When You Are Asked about Money Early in the Process • Option One – Ask about the job itself • Option Two – Talk about the value you bring

11. When You Are Asked about Money Later in the Process • Option One – Discuss scope of responsibility, size of territory • Option Two – Good company reputation for fair compensation • Option Three – If this looks good, we’re sure to agree to salary • Option Four – What’s the range (turn tables politely)

12. When the Money Questions Become Direct • Option One – Can’t compare apples to oranges • Option Two – Prefer to fit in employer’s established range – what is it?

13. What will it take to hire you? • Option One – Research shows… • Option Two – Total Package would be (add base and benefits together) • Option Three – What it would have been at the old job

14. Your Moment of Power • Employer’s interest rises with each succeeding interview, but your power is never greater than at the moment of the offer • When seller becomes buyer • Recognize green lights

15. Rules to Remember • Some companies are first offer, best offer • You MUST know the going rate • When you get the offer, use silence, drop eye contact • Describe the offer (modest, low side) • Ask for time; NEVER accept on the spot. • Ask for it in writing

16. Let’s Watch… • Body language • Expressions • Silence • Word Usage

17. Rules to Remember • Know your walk-away number • Express optimism • Confirm agreement first; then tackle other issues • Counter offer (nail down salary FIRST) • Final offer in writing – you may have to do it yourself

18. Language to Use • What can we do to work this out together? • I understand and I’m willing to wait for you to talk to your VP (appeal to higher authority) • Can the job be reclassified? • Can appreciate internal equity issues • I have a trip scheduled in the spring • Can we start at $x and review in six months?

19. Pain – when do you want it? • A little now when there’s discomfort in the negotiation process • A lot later when you discover you’ve left money on the table

20. This is all compensation… • Base Salary (FINISH IT FIRST!) • Bonus (gross/net taxes, signing advantage/disadvantage) • Medical coverage (COBRA coverage) • Retirement, 401(k) regulated • Vacation (language to ask for more) • Relocation (taxes)

21. This is all compensation… • Tuition Reimbursement – usage, waiver • Expenses – who carries the cost? • Cell phone and Blackberry • Company car

22. A Bidding War • Be careful; could send wrong message • Let Company A (your top choice) know that Company B has made an offer • Ask Company A if process can be expedited • Never lie – it’s wrong AND it could backfire!

23. Practice Session #1 • Two interviews done; one with HR, other with manager • Hiring manager has $X range • Candidate has done homework; has a bottom line of $X • Negotiations begin when offer of $X is made

24. Practice Session #2 • Three interviews done (phone screen, manager and technical) • Manager’s budget allows max of $X; he really wants this candidate • Candidate has spoken to colleagues, knows going rate. Believes special knowledge qualifies him at $X • Negotiations begin when offer of $X is made.

25. Practice Session #3 • Four interviews done (two on phone, two in person, including district manager) • Manager knows this is the best candidate, but budget will only allow for $X max. She also has internal equity issues that limit salary to $X • Candidate can bring customers with him; has studied competition’s pay, has a bottom line figure of $X • Negotiations begin when offer of $X is made

26. Practice Session #4 • One interview is done. Manager and candidate know one another from the industry • Manager’s range is between $X and $Y; needs someone to hit the ground running, so will lean toward the higher end if necessary • Candidate has researched and knows that $X is equitable. Will hold out for that. • Negotiations begin when offer of $X plus $2,500 signing bonus is made.

27. Practice Session #5 • Four interviews held (screening, manager, work team and regional director) • HR has valued position between $X and $Y Manager knows he must stay in $X vicinity to avoid internal problems • Candidate feels extremely well-qualified and expects $X, the top of the published range • Negotiation begins when an offer of $X is made

28. Practice Session #6 • One interview for internship held. Pay is flat $x/hour. Requires move to city three hours from NCSU and starts on May 15 • In order to pay expenses, student needs to earn $X/hour and cannot move until May 20 • Negotiation begins when manager calls and says, “We looking forward to you joining us. Are you on-board?”